Cyprus’ income gap widens as EU inequality edges down
Eurostat figures for 2025 reveal that income inequality in Cyprus increased, with its Gini coefficient rising to 31.2, while the EU average slightly decreased. The article explains the Gini coefficient as a measure of income distribution and provides context on its real-world implications for households. Cyprus now has a wider income gap than the EU average and a worsening trend compared to the bloc's overall improvement.
Why it matters
Widening income inequality can lead to social instability, reduced economic mobility, and increased hardship for lower-income households, impacting their ability to cover essential expenses and absorb unexpected costs.
Income inequality widened in Cyprus in 2025, moving in the opposite direction from the European Union as a whole, according to figures released Friday by Eurostat.
Cyprus’ Gini coefficient, a measure of how evenly income is distributed, rose to 31.2 from 30.1 in 2024. The EU average fell slightly, from 29.4 to 29.2.
Behind the technical term is a familiar household question: How much money do different families have available to live on?
The measure runs from zero to 100. Zero would mean everyone receives the same income, while 100 would mean one person receives all of it. A higher score indicates a wider income gap.
Cyprus’ increase of 1.1 points means income was distributed less evenly than a year earlier. It does not, by itself, establish that lower-income households became poorer or explain what caused the change.
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